Financial Performance - Total revenue for 2018 was RMB 11,268.2 million, a decrease of 28.1% from RMB 15,668.4 million in 2017[13] - Gross profit increased to RMB 2,547.2 million, with a gross margin of 22.6%, up from 16.1% in 2017[13] - Net profit attributable to shareholders increased by 28.1% to RMB 1,031.9 million from RMB 805.8 million in 2017[13] - Core net profit, excluding fair value gains, was RMB 1,006.3 million, a 30.0% increase from RMB 774.1 million in 2017[13] - Revenue from property sales was RMB 10,440.3 million, accounting for 92.7% of total revenue, down 31.6% from RMB 15,254.7 million in 2017[85] - Property management revenue increased by 41.8% to RMB 386.3 million, driven by a growth in the total area of completed properties and increased income from third-party property management[88] - Revenue from property renovation surged by 274.9% to RMB 251.0 million, attributed to customized decoration services for new projects[88] - Rental income rose by 131.4% to RMB 133.7 million, mainly due to the expansion of apartment and office platforms[88] Sales and Contracts - Contracted sales amounted to RMB 25,235.9 million, representing a 37.4% increase from RMB 18,372.7 million in 2017[13] - The average contracted sales price per square meter rose to RMB 21,726.7, a 19.5% increase compared to RMB 18,177.2 in 2017[13] - The total sales area for contracts was approximately 1,161,512 square meters, with an average contract sales price of approximately RMB 21,727 per square meter[24] - The company achieved a contract sales amount of approximately RMB 25,235.9 million in 2018, with a total contract sales area of about 1,161,512 square meters[48] - Contract sales from Zhejiang and Jiangsu regions accounted for 54.3% and 22.6% of total sales, amounting to RMB 13,707.1 million and RMB 5,696.6 million respectively[60] Land Acquisition and Reserves - The company acquired 22 projects with a total investment of RMB 15.15 billion and a total value of approximately RMB 32.43 billion during the reporting period[27] - As of December 31, 2018, the company's land reserves amounted to approximately 4.804 million square meters, sufficient for sustainable development over the next 2 to 3 years[27] - The total land reserve area increased to approximately 4,804,192 square meters by the end of 2018, reflecting a significant increase in land acquisitions[54] - The average land cost for new acquisitions was approximately RMB 9,130 per square meter[54] Debt and Financial Management - The net debt-to-equity ratio improved to 64% from 68% in 2017[14] - The company maintained a strong cash flow and issued USD 350 million in senior notes at a coupon rate of 9.45% in April 2018[54] - Cash and cash equivalents, including restricted cash, amounted to RMB 13,070.2 million as of December 31, 2018[106] - The proportion of long-term borrowings reached 64.26% of total borrowings as of December 31, 2018, ensuring stable future cash flows[110] - The company's borrowing costs decreased by 42.7% year-on-year, with capitalized amounts increasing by 62.2% to RMB 1,387.1 million[112] Business Strategy and Development - The company plans to focus on higher value-added real estate services and financial segments to enhance operational capabilities[8] - The company is focusing on a dual-driven business model of "customer insight + light asset operation" to enhance operational efficiency[24] - The company aims to transform into a high-valuation operator through the development of five major business platforms[24] - The company aims to enhance its service value through investment profits, management fees, and operational income from held properties[39] - The company is committed to providing high-quality products and services to enhance investor returns and achieve sustainable development[39] Corporate Governance - The company reported a commitment to high standards of corporate governance to protect shareholder rights and enhance corporate value and accountability[147] - The board consists of four executive directors and three independent non-executive directors, ensuring strong independence in its composition[150] - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with its provisions for the year ended December 31, 2018[147] - The company has established four board committees, including the audit committee, remuneration committee, nomination committee, and risk management committee, to oversee specific aspects of its affairs[149] - The company has implemented measures to ensure the separation of roles between the chairman and the CEO, although there is a deviation from the governance code regarding this separation[148] Risk Management - The company has established an internal audit function to regularly review and evaluate the effectiveness of its risk management and internal control systems[188] - The company has established a comprehensive internal control system covering investment, operations, marketing, finance, and human resources management[189] - The risk management committee regularly reviews and assesses insider information and has established a disclosure policy to guide employees on reporting and compliance[190] - The board believes that the current risk management and internal control systems are operating effectively[194] - The company has identified and assessed potential risks in key business processes and management procedures for the year 2018[197]